The Consumer Protection (Enforcement) (Amendment etc.) Regulations 2020

Explanatory Note

(This note is not part of the Regulations)

These Regulations implement certain provisions of Regulation (EU) 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the enforcement of consumer protection laws and repealing Regulation (EC) No. 2006/2004 (“the CPC Regulation”) to ensure that enforcers have, in domestic law, the investigation and enforcement powers necessary to perform the functions required by the CPC Regulation.

The Regulations expand the category of Community infringement by adding to the list of consumer protection laws to which Part 8 of the Enterprise Act 2002 (“the 2002 Act”) applies, enabling enforcers to seek enforcement orders against traders in the case of an infringement of those laws which harms the collective interests of consumers. The Regulations list additional EU Directives and Regulations in Schedule 13 to the 2002 Act and specify under section 212(3) of that Act the law in the United Kingdom which gives those Directives and Regulations effect.

The Regulations introduce a new concept of online interface orders into Part 8 of the 2002 Act. Courts are given the power to make orders relating to online interfaces (requiring, for example, the removal of content from or restriction of access to an interface) where the Competition and Markets Authority makes an application under that Part in respect of a Community infringement and the court considers both that there is a risk of serious harm to the collective interests of consumers and that no other available means would, by themselves, be wholly effective in stopping or preventing the infringement. An online interface order may be made against the person responsible for the infringement or a third party. Courts are also given the power to make interim online interface orders in certain circumstances. Nothing in the new provisions limits the operation of the existing provisions of Part 8 relating to enforcement orders, interim enforcement orders or undertakings.

The Regulations also amend Part 8 of the 2002 Act to provide that where enhanced consumer measures in the redress category are included in an enforcement order or undertaking in respect of a Community infringement, those measures may be for the benefit of consumers affected by that infringement and are not restricted to loss cases.

The Regulations amend Schedule 5 (investigatory powers etc.) to the Consumer Rights Act 2015 (“the 2015 Act”) to ensure that, in respect of Community infringements, the power to purchase a product may be exercised to obtain that product for use as evidence in proceedings under Part 8 of the 2002 Act.

The Regulations increase the number of national competent authorities able to exercise the required investigation and enforcement powers, by adding to the list of CPC enforcers in Part 8 of the 2002 Act and the list of EU enforcers in Schedule 5 to the 2015 Act.

The Regulations provide that relevant provisions of the Financial Services and Markets Act 2000 apply to the Financial Conduct Authority's functions under the CPC Regulation; for example, provisions relating to practical arrangements for the discharge of those functions.

The Regulations amend The Operation of Air Services in the Community (Pricing etc.) Regulations 2013 and The Civil Aviation (Access to Air Travel for Disabled Persons and Persons with Reduced Mobility) Regulations 2014 by omitting provisions that are redundant following the listing in Schedule 13 to the 2002 Act of the EU Regulations implemented by those instruments.

The Regulations have effect only in respect of conduct to the extent that it occurs, or is likely to occur, after these Regulations come into force.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

An Explanatory Memorandum and a transposition note are also available with these Regulations on www.legislation.gov.uk. Copies have been placed in the Libraries of both Houses of Parliament.